Mach-E Price Increase - Effective April 13, 2022 (rescinded 4/15)

[AKgrampy]

Yeah for park assist, but they entirely removed the foot activation sensor and double pane glass, the latter certainly wasn't for chips.


???
https://fordauthority.com/2022/02/ford-mustang-mach-e-assembly-cost-reduced-by-1000-since-inception/
This was after they announced price increase for 22 MY, this will be the third such substantial increase despite cutting costs and features? I do not buy the claim that this is "necessary" this is just trying to profit off of scarcity while they can. Not that I think they did that intentionally, building more would have been better than increasing price on fewer vehicles if they could.

How will they profit with orders closing today and all orders prior to April 13th being price protected?

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[Ranger Rick]

With the update, MSRP for Mach E Premium ER AWD will become $62800 + 1200? I remember my built-in-2020 Mach E was $54700 + 1100. Wow, that’s a $8200 hike.

Is Ford doing all this so that they can get the PR of dropping the price a little when the $7500 fed tax credit runs out at some point in 2023?

I think that economic factors are the price driver. The cost of nickel alone has gone up 62 percent since January 1, 2022. The price has spiked considerably since Russia began their assault on the population of Ukraine. Russia produces about a third of the world's nickel. Tesla has cited nickel costs as their reason for two price increases in less than three weeks.

A similar price increase impacted AWD likely due to other war related factors. Ukraine apparently is a large supplier of wiring harnesses and neon gas to make chips. The additional motor requires more wiring and more chips.

Don't get me wrong, Ford is almost surely taking advantage and raising prices more than needed (I'd argue that a large portion of the inflationary pressure around the globe is driven by speculation and greed so excessive as to defy Adam Smith's beliefs about the moderating effects of "rational economic self interest" ). However, the economic factors are undeniable.

 

[Jim_In_Mass]

Just thinking this thru - I ordered 8/8/21 (Premium SR RWD) - and just came in under the limit for the MA rebate. Any one of these price hikes would have killed the rebate.

It's not about the rebate, but I think MA might want to bump the limit up. Maybe not GTPE-level, but at least ER AWD level....

 

[Electric Goat]

My best guess is the price increase has a lot to do with the fact that battery prices have skyrocketed. They were projected to fall.

 

[jamelski]

Wow so glad I got my 21 gtpe before this crazy nesz sorry people

 

[Keeperofthe7keys]

How will they profit with orders closing today and all orders prior to April 13th being price protected?

Is everyone is price protected? What's the point of nominally increasing the price then?

 

[Blue highway]

With the update, MSRP for Mach E Premium ER AWD will become $62800 + 1200? I remember my built-in-2020 Mach E was $54700 + 1100. Wow, that’s a $8200 hike.

Is Ford doing all this so that they can get the PR of dropping the price a little when the $7500 fed tax credit runs out at some point in 2023?

See the blue line below from the BLS (US government)

Ford and every other manufacturer is being crushed between long lead times from suppliers and big price increases. They promise a price to a customer in say April and see their suppliers jack prices before the parts to build the car can be received.

The "so what" is that the price increases will continue.

 

[andrew]

I have two orders on exactly the same car.

I ordered CA RT1 on 11/28 from my closest dealership. It took awhile for the Dec 8 price change to hit my order, but when it eventually showed up in late January, I asked my dealership about price protection. They told me there was none, and that they would charge me the price on the window sticker (plus $1.5k in accessories). I was furious.

I didn’t like that I had absolutely no leverage, so I decided to make a backup plan. I ordered exactly the same car from another dealership on 1/31, and confirmed that they would not be including accessories.

Today I called both of them. The dealership for Order #2 confirmed that I will be price protected right away. Dealership from Order #1 essentially said they didn’t know. They said that they were asking their regional rep. I asked for a call back when they knew, and they downplayed any price protection. They explained the protection that happened with the MY21/22 change and said, “it would be a small amount, not the full value.” He then went on to let me know that I shouldn’t worry, “because any increase won’t be by much.” I let him know that the increase is $5,000. He changed his tone and told me he’d get back to me.

I am now very happy I placed a second order. I have absolutely no faith that my first order will have any price protection. I wish I had just done my research back in November. These rules differ based on the dealership. You gotta get word from your specific dealership to be sure of anything.

 

[Av8tor]

Still don't have my MME, stuck in Mexico, but what a journey

 

[Electric Goat]

Is everyone is price protected? What's the point of nominally increasing the price then?

If we take good care of them then our cars should hold their value much better than expected.

 

[nitinkumar00]

There are definitely reports in the build week threads of shady dealers refusing price protection or at least making the process quite difficult whether through ignorance or malice. I'm not too worried about my large, high-volume dealership playing games as they've sold plenty of Mach-E's, but was looking forward to one less thing to 'deal with' during the purchasing process.

That’s shady dealer. Ford doesn’t increase price it’s in minority and rare. Ford already clamped down on some dealers for it. I haven’t seen any reports dealers doing it in reserved orders. It’s more on canceled ones that they mark up.

 

[Swhittier]

I didn't notice this until today, but I ordered my Premium AWD EXT back in September. I did make a change before the final order was submitted in October. Once that was done the dealer selling price was 57,140. Now it seems the base price and Options have both increase by 1k each. Am I going to be screwed again next week when the price goes up again?

 

[WNKent]

No, at the time I went into the dealership, took a test drive, sat with a sales guy, put $1000 down and then sat with the Finance guy to finances the purchase - the full 2 hr. car buying experience. At the end of it we had the usual signed paperwork / contract in place.

I see the Canadian flag on your profile, I'm guessing that was in Canada?

 

[ChuckA]

Am I mistaken, but, weeks ago when Rivian announced their $20k price increase didn’t Ford announce they were holding prices? Maybe it was a dream or fake news.

 

[andrew]

Is everyone is price protected? What's the point of nominally increasing the price then?

The price protection occurs in the form of a rebate from Ford to the dealership, post sale. This is an important element because it means that the updated price appears on the window sticker. If a customer cancels their order, and someone else purchases the car, the new purchaser would not get the price protection rebate.

I’m unclear of if the dealership can still claim the rebate. If I were to guess, this rebate could only be claimed if the person who originally submitted the order is the purchaser. That’s likely why it is returned to the dealership post sale, because someone at Ford checks who bought the car.

This price change is occurring across the board. It’s most dramatic on BEVs, but it affects most Ford models. It does not appear to have anything to do with them closing the order books for the Mach E 2022. The situation gets weird for a car that has a 6-9 month wait list, but consider the cars with shorter lead times. The price protection part of the cutover starts to make more sense.

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